Guidance Regarding Foreign Base Company Sales Income, 79421-79423 [E8-30729]
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Federal Register / Vol. 73, No. 249 / Monday, December 29, 2008 / Proposed Rules
promulgate a general rule regarding the
standard of review that must be met to
justify proposed modifications to
Commission-jurisdictional agreements
under the Federal Power Act (FPA) and
Natural Gas Act (NGA) that are not
agreed to by the signatories (or their
successors). The Commission noted that
courts were divided as to whether, in
the face of contractual silence, the
Commission was required to apply the
‘‘public interest’’ standard of review or
the ‘‘just and reasonable’’ standard of
review to proposed modifications.2 The
NOPR thus focused on the standard of
review applicable to proposed changes
in contracts in the absence of
contractual language specifying the
standard of review preferred by the
parties. The NOPR did not address other
issues such as the showing needed to
satisfy the ‘‘Mobile-Sierra
presumption.’’ 3
3. The Commission, in the NOPR,
proposed a regulation which provided
that, in the absence of prescribed
contractual language enabling the
Commission to review proposed
modifications to agreements that are not
agreed to by the signatories (or their
successors) under a ‘‘just and
reasonable’’ standard of review, the
Commission will review such proposed
modifications under a ‘‘public interest’’
standard of review. The Commission
concluded that the weight of court
precedent supported application of the
‘‘public interest’’ standard when
evaluating proposed changes to such
contracts, unless the contract language
expressly invokes the ‘‘just and
reasonable’’ standard. The Commission
stated that this standard would promote
contract certainty. Additionally, the
Commission recognized the importance
of providing certainty and stability in
competitive electric energy markets.
dwashington3 on PROD1PC60 with PROPOSALS
II. Discussion
4. There is no longer a need for a
rulemaking regarding the default
standard of review, as the Supreme
Court has addressed the law in this area.
Since issuance of the NOPR, the United
States Supreme Court has addressed the
Mobile-Sierra doctrine in Morgan
Stanley. The Court held that the MobileSierra doctrine is a presumption that
2 NOPR, FERC Stats. & Regs. ¶ 32,596 at P 8
(citing Boston Edison Co. v. FERC, 233 F.3d 60 (1st
Cir. 2000)). The Boston Edison court stated that
these issues would remain in a state of confusion
until the Commission ‘‘squarely confronted the
underlying issues.’’ Boston Edison, 233 F.3d at 68.
3 Morgan Stanley Capital Group, Inc. v. Public
Utility District No. 1 of Snohomish County, 128 S.
Ct. 2733, 2739 (2008) (Morgan Stanley) (referring to
United Gas Pipe Line Co. v. Mobile Gas Serv. Corp.,
350 U.S. 332 (1956); FPC v. Sierra Pacific Power
Co., 350 U.S. 348 (1956) (Mobile-Sierra)).
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79421
rates initially set in a freely negotiated
contract meet the statutory just and
reasonable requirement of the FPA.4
The Court explained that ‘‘parties could
contract out of the Mobile-Sierra
presumption by specifying in their
contracts that a new rate filed with the
Commission would supersede the
contract rate,’’ but otherwise ‘‘the
Mobile-Sierra presumption remains the
default rule.’’ 5
5. Because the Supreme Court in
Morgan Stanley has since addressed the
default standard, the Commission
concludes that it is no longer necessary
to adopt the regulation proposed in the
NOPR. The Commission therefore
withdraws the NOPR and terminates
this rulemaking proceeding.
The Commission orders:
The Notice of Proposed Rulemaking is
hereby withdrawn and Docket No.
RM05–35–000 is hereby terminated.
Appeals for the District of Columbia
Circuit’s recent decision in Maine
Public Utilities Commission v. FERC.7
Because the Commission is bound by
the rulings in Morgan Stanley and
Maine PUC, we conclude that there is
no longer a need for a rulemaking
regarding the default standard of review.
For this reason, we concur with this
order.
Suedeen G. Kelly,
Commissioner.
Jon Wellinghoff,
Commissioner.
By the Commission. Commissioners Kelly
and Wellinghoff concurring with a separate
joint statement attached.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[REG–150066–08]
United States of America, Federal Energy
Regulatory Commission.
Standard of Review for Modifications to
Jurisdictional Agreements
Docket No. RM05–35–000
(Issued December 18, 2008.)
Kelly and Wellinghoff,
Commissioners, concurring:
This order terminates the rulemaking
proceeding on the standard of review for
modifications to jurisdictional
agreements, withdrawing the Notice of
Proposed Rulemaking (NOPR) that the
Commission issued in 2005. This order
states that, since the issuance of the
NOPR, the United States Supreme Court
addressed the Mobile-Sierra doctrine,
including the default standard of
review, in Morgan Stanley.6 As a result,
the majority finds that there is no longer
a need for a rulemaking regarding the
default standard of review.
We agree that the rulemaking
proceeding on the standard of review for
modifications to jurisdictional
agreements should be terminated.
However, we believe that in reaching
that conclusion, it is appropriate to
recognize not only the Morgan Stanley
decision, but also the U.S. Court of
4 Id.
at 2737; accord id. at 2746.
at 2739; cf. Public Util. Dist. No. 1 v. FERC,
471 F.3d 1053, 1075 (9th Cir. 2006),aff’d and
remanded sub nom., Morgan Stanley Capital Group,
Inc. v. Public Utility District No. 1 of Snohomish
County, 128 S. Ct. 2733 (2008).
6 Morgan Stanley Capital Group, Inc. v. Public
Utility District No. 1 of Snohomish County, 128 S.
Ct. 2733 (2008) (Morgan Stanley).
5 Id.
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[FR Doc. E8–30622 Filed 12–24–08; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
RIN 1545–BI45
Guidance Regarding Foreign Base
Company Sales Income
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations and notice of public hearing.
SUMMARY: In the Rules and Regulations
section of this issue of the Federal
Register, the IRS and Treasury
Department are issuing temporary
regulations relating to foreign base
company sales income, in cases in
which personal property sold by a
controlled foreign corporation (CFC) is
manufactured, produced, or constructed
pursuant to a contract manufacturing
arrangement or by one or more branches
of the CFC. The temporary regulations
modify the foreign base company sales
income regulations to address current
business structures and practices,
particularly the growing importance of
contract manufacturing and other
manufacturing arrangements. The
temporary regulations, in general, will
affect CFCs and their United States
shareholders. The text of the temporary
regulations also serves as the text of the
proposed regulations. This document
also provides notice of a public hearing.
DATES: Written or electronic comments
must be received by March 30, 2009.
Outlines of the topics to be discussed at
7 Maine Public Utilities Commission v. FERC, 520
F.3d 464, petition for reh’g denied, No. 06–1403,
slip op. (D.C. Cir. Oct. 6, 2008) (Maine PUC)
(discussing, among other issues, the circumstances
in which it is appropriate to apply the Mobile-Sierra
presumption).
E:\FR\FM\29DEP1.SGM
29DEP1
79422
Federal Register / Vol. 73, No. 249 / Monday, December 29, 2008 / Proposed Rules
the public hearing scheduled for April
20, 2009, at 10 a.m. must be received by
April 2, 2009.
Send submissions to:
CC:PA:LPD:PR (REG–150066–08), room
5203 Internal Revenue Service, PO Box
7604 Ben Franklin Station, Washington,
DC 20044. Submissions may be handdelivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to CC:PA:LPD:PR (REG–150066–08),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue NW.,
Washington, DC 20224. Alternatively,
taxpayers may submit electronic
comments via the Federal eRulemaking
Portal at https://www.regulations.gov
(IRS–REG–150066–08).
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Ethan Atticks, (202) 622–3840;
concerning submissions of comments,
hearing, and/or to be placed on the
building access list to attend the
hearing, Richard A. Hurst at
Richard.a.hurst@irscounsel.treas.gov or
(202) 622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of
Provision
Business Administration for comment
on their impact on small business.
Comments and Public Hearing
Before the proposed regulations are
adopted as final regulations,
consideration will be give to any written
comments (a signed original and eight
(8) copies) or electronic comments that
are submitted timely to the IRS. The IRS
and the Treasury Department
specifically request comments on the
clarity of the proposed rules and how
they may be made easier to understand.
All comments will be available for
public inspection and copying.
A public hearing has been scheduled
for April 20, 2009, beginning at 10 a.m.
in the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue,
NW., Washington, DC. Due to building
security procedures, visitors must enter
at the Constitution Avenue entrance. In
addition, all visitors must present photo
identification to enter the building.
Because of access restrictions, visitors
will not be admitted beyond the
Constitution Avenue entrance area more
than 30 minutes before the hearing
starts. For information about having
your name placed on the building
access list to attend the hearing, see the
section of this preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit written comments or
electronic comments by March 30, 2009,
and an outline of the topics to be
discussed and the time to be devoted to
each topic (signed original and eight (8)
copies) by April 2, 2009. A period of 10
minutes will be allotted to each person
for making comments. An agenda
showing the scheduling of the speakers
will be prepared after the deadline for
receiving outlines has passed. Copies of
the agenda will be available free of
charge at the hearing.
Special Analyses
dwashington3 on PROD1PC60 with PROPOSALS
The temporary regulations in the
Rules and Regulations section of this
issue of the Federal Register amend the
Income Tax Regulations (26 CFR part 1)
relating to foreign base company sales
income, in cases in which personal
property sold by a controlled foreign
corporation (CFC) is manufactured,
produced, or constructed pursuant to a
contract manufacturing arrangement or
by one or more branches of the CFC.
These regulations, in general, will affect
CFCs and their United States
shareholders. The text of those
temporary regulations also serves as the
text of these proposed regulations. The
preamble to the temporary regulations
explains these proposed regulations.
Drafting Information
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
regulatory assessment is not required. It
has also been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations and because the
regulations do not impose a collection
of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Code, these
regulations have been submitted to the
Chief Counsel for Advocacy of the Small
The principal author of these
regulations is Ethan Atticks of the Office
of Associate Chief Counsel
(International). However, other
personnel from the IRS and the Treasury
Department participated in their
development.
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FOR FURTHER INFORMATION CONTACT
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
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PART 1—INCOME TAXES
Paragraph 1. The authority citation
for 26 CFR part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *.
Par. 2. Section 1.954–3 is amended by
revising paragraphs (b)(1)(i)(c),
(b)(1)(ii)(a), (b)(1)(ii)(c), (b)(2)(i)(b),
(b)(2)(i)(d), (b)(2)(ii)(a), (b)(2)(ii)(b),
(b)(2)(ii)(e), (b)(4) Example (3), (c), and
(d), and adding Examples 8 and 9 to
paragraph (b)(4), and adding paragraphs
(e), (f) and (g) to read as follows:
§ 1.954–3
income.
Foreign base company sales
*
*
*
*
*
(b) * * * (1) * * * (i) * * *
(c) [The text of the proposed
amendments to § 1.954–3(b)(1)(i)(c) is
the same as the text of § 1.954–
3T(b)(1)(i)(c) published elsewhere in
this issue of the Federal Register].
(ii) * * * (a) [The text of the
proposed amendments to § 1.954–
3(b)(1)(ii)(a) is the same as the text of
§ 1.954–3T(b)(1)(ii)(a) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
(c) [The text of the proposed
amendments to § 1.954–3(b)(1)(ii)(c) is
the same as the text of § 1.954–
3T(b)(1)(ii)(c) published elsewhere in
this issue of the Federal Register].
(2) * * * (i) * * *
(b) [The text of the proposed
amendments to § 1.954–3(b)(2)(i)(b) is
the same as the text of § 1.954–
3T(b)(2)(i)(b) published elsewhere in
this issue of the Federal Register].
*
*
*
*
*
(d) [The text of the proposed
amendments to § 1.954–3(b)(2)(i)(d) is
the same as the text of § 1.954–
3T(b)(2)(i)(d) published elsewhere in
this issue of the Federal Register].
*
*
*
*
*
(ii) * * *
(a) [The text of the proposed
amendments to § 1.954–3(b)(2)(ii)(a) is
the same as the text of § 1.954–
3T(b)(2)(ii)(a) published elsewhere in
this issue of the Federal Register].
(b) [The text of the proposed
amendments to § 1.954–3(b)(2)(ii)(b) is
the same as the text of § 1.954–
3T(b)(2)(ii)(b) published elsewhere in
this issue of the Federal Register].
*
*
*
*
*
(e) [The text of the proposed
amendments to § 1.954–3(b)(2)(ii)(e) is
the same as the text of § 1.954–
3T(b)(2)(ii)(e) published elsewhere in
this issue of the Federal Register].
*
*
*
*
*
(4) * * *
E:\FR\FM\29DEP1.SGM
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Federal Register / Vol. 73, No. 249 / Monday, December 29, 2008 / Proposed Rules
Example (3). [The text of the proposed
amendments to § 1.954–3(b)(4) Example
3 is the same as the text of § 1.954–
3T(b)(4) Example 3 published elsewhere
in this issue of the Federal Register].
*
*
*
*
*
Example 8. [The text of the proposed
amendments to § 1.954–3(b)(4) Example
8 is the same as the text of § 1.954–3T
Example 8 published elsewhere in this
issue of the Federal Register].
Example 9. [The text of the proposed
amendments to § 1.954–3(b)(4) Example
9 is the same as the text of § 1.954–3T
Example 9 published elsewhere in this
issue of the Federal Register].
(e) [The text of the proposed
amendments to § 1.954–3(e) is the same
as the text of § 1.954–3T(e) published
elsewhere in this issue of the Federal
Register].
(f) [The text of the proposed
amendments to § 1.954–3(f) is the same
as the text of § 1.954–3T(f) published
elsewhere in this issue of the Federal
Register].
(g) [The text of the proposed
amendments to § 1.954–3(g) is the same
as the text of § 1.954–3T(g) published
elsewhere in this issue of the Federal
Register].
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E8–30729 Filed 12–24–08; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 31
[REG–148568–04]
RIN 1545–BD93
Employer’s Annual Federal Tax Return
and Modifications to the Deposit Rules
dwashington3 on PROD1PC60 with PROPOSALS
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations.
SUMMARY: This document revises the
notice of proposed rulemaking
published in the Federal Register on
January 3, 2006. In the Rules and
Regulations section of this issue of the
Federal Register, the IRS is issuing
temporary regulations relating to the
annual filing of Federal employment tax
returns and requirements for
employment tax deposits under sections
6011 and 6302 of the Internal Revenue
Code (Code). Those temporary
regulations generally allow certain
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13:01 Dec 24, 2008
Jkt 217001
employers to file a Form 944,
‘‘Employer’s ANNUAL Federal Tax
Return,’’ rather than Form 941,
‘‘Employer’s QUARTERLY Federal Tax
Return.’’ In addition to rules related to
Form 944, those temporary regulations
provide an additional method for
employers who file Form 941 to
determine whether the amount of
accumulated employment taxes is
considered de minimis. The temporary
and proposed regulations affect
taxpayers that file Form 941,
‘‘Employer’s QUARTERLY Federal Tax
Return,’’ Form 944, ‘‘Employer’s
ANNUAL Federal Tax Return,’’ and any
related Spanish-language returns or
returns for U.S. possessions. The text of
those regulations also serves as the text
of these proposed regulations.
DATES: Written or electronic comments
and requests for a public hearing must
be received by March 30, 2009.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–148568–04), room
5203, Internal Revenue Service, POB
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be handdelivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to: CC:PA:LPD:PR (REG–148568–04),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent
electronically via the Federal
eRulemaking Portal at https://
www.regulations.gov (IRS REG–148568–
04).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Audra M. Dineen at (202) 622–4910;
concerning submissions of comments
and requests for a public hearing,
Oluwafunmilayo Taylor of the
Publications and Regulations Branch at
(202) 622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Temporary regulations in the Rules
and Regulations section of this issue of
the Federal Register amend the
Regulations on Employment Taxes and
Collection of Income Tax at Source (26
CFR part 31) under section 6011 relating
to the federal employment tax return
filing requirements and section 6302
relating to the employment tax deposit
requirements. The regulations concern
the reporting and paying of income
taxes withheld from wages and taxes
under the Federal Insurance
Contributions Act (FICA). The text of
those temporary regulations also serves
as the text of these proposed
regulations. The preamble to the
temporary regulations explains the
temporary regulations and these
PO 00000
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79423
proposed regulations. The temporary
and proposed regulations are part of the
IRS’s effort to reduce taxpayer burden
by permitting certain employers to file
one return annually to report their
employment tax liabilities instead of
four quarterly returns.
Proposed Effective/Applicability Date
The regulations, as proposed, will
apply to taxable years ending on or after
the date of publication of the Treasury
decision adopting these rules as final
regulations in the Federal Register.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. Therefore, a
regulatory assessment is not required. It
also has been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations.
It is hereby certified that these
regulations will not have a significant
economic impact on a substantial
number of small entities pursuant to the
Regulatory Flexibility Act (5 U.S.C.
Chapter 6). The regulations under
sections 6011 and 6302 affect only a
small number of taxpayers that file
employment tax returns. Therefore, the
Treasury Department and the IRS have
determined that these regulations will
not affect a substantial number of small
entities. In addition, the Treasury
Department and the IRS have
determined that any impact on entities
affected by the regulations will not be
significant. The regulations merely
allow certain employers to file their
employment tax return annually rather
than quarterly. Therefore, these
regulations will reduce the burden on
these employers, by reducing the
number of returns they must file each
year. Based on these facts, the IRS has
determined that these regulations will
not have a significant economic impact
on a substantial number of small
entities. Pursuant to section 7805(f) of
the Internal Revenue Code, this
regulation has been submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on their impact on small business.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
written (a signed original and eight (8)
copies) or electronic comments that are
submitted timely to the IRS. The IRS
and Treasury Department request
comments on the substance of the
E:\FR\FM\29DEP1.SGM
29DEP1
]]>Agencies
[Federal Register Volume 73, Number 249 (Monday, December 29, 2008)]
[Proposed Rules]
[Pages 79421-79423]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30729]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-150066-08]
RIN 1545-BI45
Guidance Regarding Foreign Base Company Sales Income
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations and notice of public hearing.
-----------------------------------------------------------------------
SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS and Treasury Department are issuing temporary
regulations relating to foreign base company sales income, in cases in
which personal property sold by a controlled foreign corporation (CFC)
is manufactured, produced, or constructed pursuant to a contract
manufacturing arrangement or by one or more branches of the CFC. The
temporary regulations modify the foreign base company sales income
regulations to address current business structures and practices,
particularly the growing importance of contract manufacturing and other
manufacturing arrangements. The temporary regulations, in general, will
affect CFCs and their United States shareholders. The text of the
temporary regulations also serves as the text of the proposed
regulations. This document also provides notice of a public hearing.
DATES: Written or electronic comments must be received by March 30,
2009. Outlines of the topics to be discussed at
[[Page 79422]]
the public hearing scheduled for April 20, 2009, at 10 a.m. must be
received by April 2, 2009.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-150066-08), room 5203
Internal Revenue Service, PO Box 7604 Ben Franklin Station, Washington,
DC 20044. Submissions may be hand-delivered Monday through Friday
between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-150066-08),
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW.,
Washington, DC 20224. Alternatively, taxpayers may submit electronic
comments via the Federal eRulemaking Portal at https://
www.regulations.gov (IRS-REG-150066-08).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Ethan Atticks, (202) 622-3840; concerning submissions of comments,
hearing, and/or to be placed on the building access list to attend the
hearing, Richard A. Hurst at Richard.a.hurst@irscounsel.treas.gov or
(202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provision
The temporary regulations in the Rules and Regulations section of
this issue of the Federal Register amend the Income Tax Regulations (26
CFR part 1) relating to foreign base company sales income, in cases in
which personal property sold by a controlled foreign corporation (CFC)
is manufactured, produced, or constructed pursuant to a contract
manufacturing arrangement or by one or more branches of the CFC. These
regulations, in general, will affect CFCs and their United States
shareholders. The text of those temporary regulations also serves as
the text of these proposed regulations. The preamble to the temporary
regulations explains these proposed regulations.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866.
Therefore, a regulatory assessment is not required. It has also been
determined that section 553(b) of the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these regulations and because the
regulations do not impose a collection of information on small
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not
apply. Pursuant to section 7805(f) of the Code, these regulations have
been submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on their impact on small business.
Comments and Public Hearing
Before the proposed regulations are adopted as final regulations,
consideration will be give to any written comments (a signed original
and eight (8) copies) or electronic comments that are submitted timely
to the IRS. The IRS and the Treasury Department specifically request
comments on the clarity of the proposed rules and how they may be made
easier to understand. All comments will be available for public
inspection and copying.
A public hearing has been scheduled for April 20, 2009, beginning
at 10 a.m. in the IRS Auditorium, Internal Revenue Building, 1111
Constitution Avenue, NW., Washington, DC. Due to building security
procedures, visitors must enter at the Constitution Avenue entrance. In
addition, all visitors must present photo identification to enter the
building. Because of access restrictions, visitors will not be admitted
beyond the Constitution Avenue entrance area more than 30 minutes
before the hearing starts. For information about having your name
placed on the building access list to attend the hearing, see the FOR
FURTHER INFORMATION CONTACT section of this preamble.
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who
wish to present oral comments at the hearing must submit written
comments or electronic comments by March 30, 2009, and an outline of
the topics to be discussed and the time to be devoted to each topic
(signed original and eight (8) copies) by April 2, 2009. A period of 10
minutes will be allotted to each person for making comments. An agenda
showing the scheduling of the speakers will be prepared after the
deadline for receiving outlines has passed. Copies of the agenda will
be available free of charge at the hearing.
Drafting Information
The principal author of these regulations is Ethan Atticks of the
Office of Associate Chief Counsel (International). However, other
personnel from the IRS and the Treasury Department participated in
their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for 26 CFR part 1 continues to
read in part as follows:
Authority: 26 U.S.C. 7805 * * *.
Par. 2. Section 1.954-3 is amended by revising paragraphs
(b)(1)(i)(c), (b)(1)(ii)(a), (b)(1)(ii)(c), (b)(2)(i)(b), (b)(2)(i)(d),
(b)(2)(ii)(a), (b)(2)(ii)(b), (b)(2)(ii)(e), (b)(4) Example (3), (c),
and (d), and adding Examples 8 and 9 to paragraph (b)(4), and adding
paragraphs (e), (f) and (g) to read as follows:
Sec. 1.954-3 Foreign base company sales income.
* * * * *
(b) * * * (1) * * * (i) * * *
(c) [The text of the proposed amendments to Sec. 1.954-
3(b)(1)(i)(c) is the same as the text of Sec. 1.954-3T(b)(1)(i)(c)
published elsewhere in this issue of the Federal Register].
(ii) * * * (a) [The text of the proposed amendments to Sec. 1.954-
3(b)(1)(ii)(a) is the same as the text of Sec. 1.954-3T(b)(1)(ii)(a)
published elsewhere in this issue of the Federal Register].
* * * * *
(c) [The text of the proposed amendments to Sec. 1.954-
3(b)(1)(ii)(c) is the same as the text of Sec. 1.954-3T(b)(1)(ii)(c)
published elsewhere in this issue of the Federal Register].
(2) * * * (i) * * *
(b) [The text of the proposed amendments to Sec. 1.954-
3(b)(2)(i)(b) is the same as the text of Sec. 1.954-3T(b)(2)(i)(b)
published elsewhere in this issue of the Federal Register].
* * * * *
(d) [The text of the proposed amendments to Sec. 1.954-
3(b)(2)(i)(d) is the same as the text of Sec. 1.954-3T(b)(2)(i)(d)
published elsewhere in this issue of the Federal Register].
* * * * *
(ii) * * *
(a) [The text of the proposed amendments to Sec. 1.954-
3(b)(2)(ii)(a) is the same as the text of Sec. 1.954-3T(b)(2)(ii)(a)
published elsewhere in this issue of the Federal Register].
(b) [The text of the proposed amendments to Sec. 1.954-
3(b)(2)(ii)(b) is the same as the text of Sec. 1.954-3T(b)(2)(ii)(b)
published elsewhere in this issue of the Federal Register].
* * * * *
(e) [The text of the proposed amendments to Sec. 1.954-
3(b)(2)(ii)(e) is the same as the text of Sec. 1.954-3T(b)(2)(ii)(e)
published elsewhere in this issue of the Federal Register].
* * * * *
(4) * * *
[[Page 79423]]
Example (3). [The text of the proposed amendments to Sec. 1.954-
3(b)(4) Example 3 is the same as the text of Sec. 1.954-3T(b)(4)
Example 3 published elsewhere in this issue of the Federal Register].
* * * * *
Example 8. [The text of the proposed amendments to Sec. 1.954-
3(b)(4) Example 8 is the same as the text of Sec. 1.954-3T Example 8
published elsewhere in this issue of the Federal Register].
Example 9. [The text of the proposed amendments to Sec. 1.954-
3(b)(4) Example 9 is the same as the text of Sec. 1.954-3T Example 9
published elsewhere in this issue of the Federal Register].
(e) [The text of the proposed amendments to Sec. 1.954-3(e) is the
same as the text of Sec. 1.954-3T(e) published elsewhere in this issue
of the Federal Register].
(f) [The text of the proposed amendments to Sec. 1.954-3(f) is the
same as the text of Sec. 1.954-3T(f) published elsewhere in this issue
of the Federal Register].
(g) [The text of the proposed amendments to Sec. 1.954-3(g) is the
same as the text of Sec. 1.954-3T(g) published elsewhere in this issue
of the Federal Register].
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-30729 Filed 12-24-08; 8:45 am]
BILLING CODE 4830-01-P
